Piercing Candlestick Pattern _ पूरी जानकारी.

Piercing Candlestick Pattern _ पूरी जानकारी. 

 How to Trade the Piercing Candlestick Pattern.

You can get all the information you require regarding the Piercing candlestick pattern here.

·      The Piercing Candlestick Pattern: Explained.

·      How to Recognize the Piercing Candlestick Pattern.

·      The Piercing Candlestick Pattern's variations.

·      Trading the Piercing Candlestick Pattern: A Guide.

·      Trading Techniques for the Piercing Candlestick Pattern.

 

Ø Strategy 1: Retractions on Bare Charts.

Ø Strategy 2: Using Support Levels to Trade the Piercing.

Ø Strategy 3: Using Moving Averages to Trade the Piercing.

Ø Strategy 4: Using RSI Divergences to Trade the Piercing.

Ø Strategy 5: Using Fibonacci to Trade the Piercing.

Ø Strategy 6: Using Pivot Points to Trade the Piercing.

The Piercing Candlestick Pattern: Explained.

A Japanese candlestick design is called Piercing.

Despite it often indicating a short-term reversal, it is a bullish reversal pattern.

It usually shows rejection of reduced pricing and arises following a price lower.

The pattern is bullish since we anticipate a bull move once the Piercing shows up at the proper spot.

It is a reversal pattern since we want to see a decline in price prior to the piercing, which is also a common indication that a trend is coming to an end.

The Dark Cloud Cover candlestick design is replicated in the Piercing pattern as well.

How to Recognize the Piercing Candlestick Pattern.

Two candles combine to make the Piercing candlestick pattern.

To recognize the Piercing candlestick pattern, follow these steps:

1.    There must be a bearish candle initially.

2.    A bullish second candle is required.

3.    There must be a space between the first and second candles for the second candle's open level to be below the first.

4.    The second candle's close needs to be higher than the first candle's 50% body level.

Look at….................................................

The Piercing Candlestick Pattern's variations.

On your charts, the Piercing candlestick pattern can seem a small different.

There may be wicks at the bottom of the candles. The green one, the red one, or both, indicating further rejection from the negative side. 

 Look at…................................................................................

Trading the Piercing Candlestick Pattern: A Guide.

Finding a pattern with the same form on your charts is not enough to trade the Piercing candlestick pattern.

Let me clarify.

A pattern is legitimate not just because of its shape but also because of where it appears.

This implies that a shape that appears in multiple places could signify different things.

The price should first decline, indicating a bearish move, while trading the Piercing pattern.

A potential upside reversal is indicated by a Piercing pattern that follows this bearish move.

Look at…..........................................................................

When the second candle's high is broken, the Piercing pattern is exchanged. It's so simple.

Your conservative trigger to go long is that.

Look at…….................................................

Now that things don't always go as planned when trading, you also want to protect yourself.

And we use a stop loss for that.

There exist multiple varieties of stop loss strategies.

The most popular method is to set it using the other side of the pattern.

Look at…......................................................

However, hold off on trading the piercing just yet.

There are also other things to be aware of.

We should ideally trade the Piercing candlestick pattern in conjunction with other technical analysis or indicators to improve accuracy.

These are several trading techniques for the Piercing pattern. 

Trading Techniques for the Piercing Candlestick Pattern.

Strategy 1: Retractions on Bare Charts.

When the price is rising, the Piercing is a bullish reversal pattern that is worth keeping watching on.

Simply wait till a pullback begins, and then look for the Piercing.

That frequently signals the end of the pullback and the beginning of the new upward trend. 

For Example…………………................................

Strategy 2: Using Support Levels to Trade the Piercing. 

Levels of support and resistance are excellent sources of price reversals.

We want to trade the Piercing using support levels since we are searching for upward movements. 

How does it operate?

·      On your charts, indicate the support levels.

·      Await a drop in price that reaches the support level.

·      Verify if there is a piercing pattern at that level.

·      When the price surpasses the peak of the final candle in the piercing, go long.

·      Assume a move to the upside and set your stop loss and take profit levels.

For Example………........................................

Strategy 3: Using Moving Averages to Trade the Piercing.

For trading trends, moving averages are excellent trading indicators.

When prices are rising, the strategy here is to trade pullbacks to the moving average.

How it operates:

·      Look for an upward trend where the price exceeds a moving average.

·      Await the price to drop to the moving average.

·      Check to see if the moving average indicates a piercing pattern.

·      When the price breaks the peak of the final candle in the piercing, go long.

·      Decide on your take-profit and stop-loss levels and anticipate expansion.

For Example……….........................................................\

Strategy 4: Using RSI Divergences to Trade the Piercing.

 Compared to the other trading strategies, this is a little different.

The price must first be on a downward trend, producing lower lows and lower highs, in order to identify a bullish RSI divergence.

 It operates as follows:

·      Look for a downward trend.

·      After each leg to the downside, note the price's lows.

·      Compare the price lows and the RSI indicator together.

·      You can identify divergence when the price makes lower lows and the RSI makes higher lows.

·      You now watch for a Piercing pattern to show up at a lower low in price that coincides with a higher low on the RSI.

·      When the price surpasses the peak of the final candle in the piercing, go long.

·      Assume an upward rise and set your take-profit and stop-loss levels.

For Example………...................................................

Strategy 5: Using Fibonacci to Trade the Piercing.

The Fibonacci retracement tool is another well-liked method of trading the Piercing candlestick pattern.

Fibonacci indicates retracement levels at which the price is likely to regularly recover.

Different levels are more likely to complement the Piercing pattern depending on the trend's intensity. More information about the various Fibonacci retracement levels may be found here.

The strategy operates as follows:

·      You want to see an upward trend in the price.

·      You then wait for a decrease, which always hits finally.

·      Draw the levels of the move from its low to its high using your Fibonacci tool.

·      You should wait until the price reaches a Fibonacci level and shows a piercing pattern.

·      When the price surpasses the peak of the final candle in the piercing, go long.

·      Assume an upward rise and set your take-profit and stop-loss levels.

For Example………........................................................

Strategy 6: Using Pivot Points to Trade the Piercing.

Pivot points are automatically determined levels of resistance and support based on mathematical calculations.

The Daily Pivot Points are the most widely employed while day trading, though the Weekly and Monthly are also commonly use.

Here's how to use pivot points to trade the piercing pattern:

    ·      Turn on your charts' Pivot Points indicator.

·      Verify which pivot points are discounted; they will typically serve as a support.

·      Although it's not necessary, it's ideal to see the price increasing.

·      Await the price to drop to a Pivot Point level.

·      You want to see a piercing pattern at that level, which indicates that the level is being declined.

·      When the price surpasses the peak of the final candle in the piercing, go long.

·      Assume an upward rise and set your take-profit and stop-loss levels.

For Example……..................................................................

What Is The Piercing Pattern's Success Rate?

The Piercing candlestick pattern has a 64% success rate, according to Thomas N. Bulkowski's Encyclopedia of Candlestick Charts.